Tech Stocks Are Bouncing Back After Upbeat Earnings
Stocks started Friday higher, bouncing back from Thursday’s selloff, after the latest inflation data failed to overshadow upbeat earnings from big tech.
The Dow Jones Industrial Average was flat shortly after the market open. The S&P 500 was up 0.5%. The Nasdaq Composite was up 1.1%.
U.S. equity futures initially jumped after the Bureau of Economic Analysis said the personal-consumption expenditures price index rose 0.3% in March, in line with economists’ expectations. But as the stock market’s open approached, futures returned to where they were trading prior to the report.
“Wall Street breathed a collective sigh of relief after the close yesterday, and instead of Alka-Seltzer coming to the rescue it was Alphabet (GOOGL) and Microsoft (MSFT) which both reported strong Q1 results,” writes Bespoke Investment Group co-founder Paul Hickey. “Bulls have taken the inline PCE data and run with it as investors had been positioned for a hotter reading.”
One reason the Dow is lagging behind Friday is that it does not include Alphabet stock, which was up nearly 11%.